Deloitte predicts 30,000 personal insolvencies

The number of people who filed for bankruptcy in the last quarter will break through the 30,000 ceiling for the first time Deloitte's personal insolvency expert has warned.

Ahead of the release of tomorrow’s national insolvency statistics, Louise Brittain, reorganisation services partner at the firm, said:

'We predict that for the first time ever, the number of people filing for bankruptcy will rise above the 30,000 mark.

'Whilst this figure is staggering, it would be far from surprising. In spite of government initiatives such as debt relief orders, the increasingly challenging economic climate has claimed and will continue to claim yet more victims.

'I expect tomorrow’s insolvency figures will be exacerbated in the coming months as unemployment levels rise. 2009 may break all personal insolvency records with the number of people filing for bankruptcy likely to exceed 130,000 individuals,' Brittain added.

Deloitte pinpointed a combination of unserviceable credit card debt and the rising cost of living as the key drivers of the situation.

'People are examining their finances, and taking steps to consolidate debts where possible,' Brittain said.

'Those who are unable to do so are taking the bankruptcy route – it no longer holds the same haunting stigma as it once did.

'Rather, people are seeing it as an opportunity to close the chapter on one part of their life and move on with a fresh start.'

Further reading:

Brittain's defection is a major coup for Deloitte